It is reported that Netflix will increase the price of subscription services in many countries and regions.
On the evening of October 16, Beijing time, streaming video service giant Netflix will release its third-quarter results on Thursday. Driven by the restricted account sharing policy, the number of Netflix subscribers is expected to increase by about 6 million in the third quarter.
In addition, the industry generally expects Netflix to increase the price of subscription services in the coming months.
Tuyuan PexelsNetflix is the only large streaming company that is profitable, but it has not joined competitors such as Disney in raising the price of ad-free subscription services this year. Instead, Netflix attracts more than 100 million users who use its services but have not yet subscribed by restricting the sharing of accounts outside their homes.
In response, Bernstein analysts said: "Today, Netflix is very similar to a utility company. But the challenge of being labeled as a 'utility company' is how to continue to grow for a mature company."
Earlier this month, it was reported that Netflix would raise prices in several markets around the world in the months after the Hollywood strike ended, with the United States and Canada bearing the brunt. This means that Netflix is likely to announce a price increase at this week's earnings meeting.
In July, Hollywood suffered its first simultaneous strike of screenwriters and actors since 1960. Last week, the Writers Association of America (WGA) approved previous agreements with major studios, including Netflix. Under the agreement, Netflix, Disney +, Hulu and other streaming services will share streaming data with WGA, allowing writers to see the popularity of their own content.
Last year, Netflix launched a subscription service with ads, but progress has been slow. Analysts say Netflix is expected to raise the price of its ad-free subscription service in the coming months.
Analysts say that after the ban on account sharing, most Netflix viewers chose ad-free subscription services. The price of Netflix with advertising service is $6.99 per month, while the starting price of non-advertising service is $15.49.
"through these strategies, the number of Netflix subscribers with advertising services is likely to double next year," said Ross Benes, an analyst at Insider Intelligence, a research firm. "like competitors, Netflix will show more ads to users over time."
Visible Alpha, a data analysis platform, estimates that subscription services with ads will generate about $188.1 million in revenue for Netflix and increase the number of subscribers by 2.8 million in the third quarter to the end of September.
According to LSEG, Wall Street generally expects the number of new subscribers to Netflix to reach a new high in the third quarter of this year.
Wall Street expects Netflix's third-quarter revenue to reach $8.54 billion, up 7.7% from a year earlier and the biggest increase in five quarters.
